operations
DESCRIPTION
TRANSCRIPT
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State Automobile License Renewals
Victoria Aleksina
Sara Gibson
Larry Jernigan
TK Johnson
Eve Martin
Marney Sherrill
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Introduction
Henry CoupeBranch manager
Analyze the current driver's license renewal
process
Increase productivity
Decrease cost Increase customer satisfaction
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Process Flow ChartStep 1 2 3 4 5 6 7
Time Utilized
(in seconds)
% of TimeUtilized
Applicant 0 N/A
General Clerk 1 15 25%
General Clerk 2 30 50%
General Clerk 3 60 100%
General Clerk 4 40 67%
Photographer 20 33%
Officer 30 50%
Capacity Infinity 240 120 60 90 180 120 60RenewalCapacity
Time(in seconds)
0 15 30 60 40 20 30 195ProcessTime
bottleneckcontributory
issue
Review Application for Correctness
Process & Record
Payment
Check for Violations & Restrictions
Conduct Eye Test
Photograph Applicant
Issue Temporary
License
Complete Application
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Analysis of the Situation• Primary issue is bottleneck at steps 3 and 4
resulting in low customer satisfaction, low employee productivity, and low employee morale.
• Secondary issue (and secondary bottleneck) is the eye exam. Delays affect the overall wait time and decrease the volume of renewals.
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Goals and Objectives
Increase efficiency
Cut costs
Improve customer satisfactio
n
•120 renewal applications per hour
•Increase employee utilization to 70%
•Cut cost by 50%
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Alternative Courses of Action
Change order/responsibility
of process tasks
•Reduce daily expenses by $96 and 60 seconds
Purchase camera system
•Reduce daily expenses by $288 •Camera system costs $2,488
Create two lines
•Combination of Option 1 and 2•Expenses total $9,360•Daily revenues $14,280
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New designback wall
Clerk 4Clerk 1 Clerk 3Clerk 2 Officer Clerk 6
eye chart
table holding renewal applications,pens, & clipboards
wall for picture backdrop
camera & tripod
eye chart
wall for picture backdrop
Clerk 5
go to side with smallest line
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Quality Management Definition: high volume (120) of processed renewals per hour high efficiency increase revenue while lower costs TQM & Dimensions of Quality: customer focus well-designed process performance dimension: meet goal efficiently, no short-cuts aesthetics dimension: space layout facilitate seamless process
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Cost of Quality
External Failure
Long lines
Low customer satisfaction
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Poka-yokes
Stickers reminding applicants and clerks to review data
Visual signs and verbal effort to direct traffic
Reminder to smile for clerks
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Evaluation and ControlCurrent wait line analysis
Make the changes
Compare results
Ongoing evaluation
• Measures:
1. Average employee utilization
2. Average # of applicants in line and in the system
3. Average waiting time in line and in system
• During one week:
Analysis of the employee utilization, applicant wait lines, and applicant processing times.
• One month after the implementing the changes – another analysis covering one-week period.
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Questions?